KodakOne, Kodak’s blockchain project, has largely been linked to its surging share prices. It is the vehicle through which it aims to be once again relevant in the photography industry.
In a development that aims to protect and improve digital rights management, Wenn Digital, a developer of an image protection blockchain platform licensed by Eastman Kodak Co stated it aims to raise up to $50 million in a combined public and private token offering.
Wenn Digital’s KODAKOne is a blockchain-based platform which seeks to protect the copyright of images or photographs registered on it. Kodak has a minority stake in Wenn Digital.
U.S. photography pioneer Kodak has been active in developing the blockchain platform with Wenn, and its recent share performance has been strongly tied to the outlook for KODAKOne.
In early January 2018, Kodak’s shares surged to $13.25 after the announcement of a deal with Wenn Digital. However its shares fell following delays in the token offering due to regulatory issues. On Wednesday its stock closed at $5.45.
Wenn’s token – KODAKCoin – is expected to go public with the offering on May 21.
“We really took a step back and decided that we would ensure that all Ts were crossed and Is dotted before we embark on a public sale,” said Cam Chell, chairman and co-founder of KODAKOne. “We wanted to make sure that we got it right.”
According to Chell, KODAKOne’s initial coin/token offering will be legally compliant with the U.S. Securities and Exchange Commission, using an instrument called the Simple Agreement for Future Tokens (SAFT).
Under a SAFT offering, the token is issued when the blockchain platform is launched, which Chell said was expected to be later this year.
As per analysts, the SAFT structure makes token sales viable since it limits participation to accredited investors. Incidentally, companies issuing SAFTs need not register with the SEC.
In 2017, Filecoin using the SAFT structure in August and September to raise nearly $200 million.
Filecoin is a decentralized network that aims to facilitate the storage, retrieval, and transmission of data.
Although Wenn Digital has already conducted a pre-sale of its SAFT to accredited investors, which raised around $10 million, it only met 50% of its capital requirement of $20 million.
As per Chell the demand was greater however.
“I think $50 million is our sweet spot,” said Chell.